The Exploration Of Individual Income Taxation Model In China

On August 31,2018,the Standing Committee of the Thirteenth National People's Congress formally reviewed and approved the seventh revised "Personal Income Tax Law of the People's Republic of China".Compared with the previous six revisions,there are many substantial changes in this revision.The most concerned by the society and the academic community is the progress of the personal income taxation model from the taxation model of classified income to the taxation model of combined income combining taxonomy and synthesis.This is compatible with China's current economic development.The new model includes wages,salary income,labor remuneration income,manuscript income,royalties income and other labor income into the scope of comprehensive income taxation.Only after the comprehensive income model is opened can children 's education be established based on the special circumstances of taxpayers,Continuing education,serious illness medical care,housing loan interest or housing rent,support for the elderly and other special additional deductions.This reform has taken a substantial and crucial step and opened a new era of personal income tax,but the task of future reforms is still very arduous.The academic circles have many controversies about the revision of this tax law,such as whether the tax amount of the special additional deduction is reasonable,whether the individual taxpayer still does not match the current model,the marginal tax rate is still too high,and the corresponding collection and management after the new model is proposed Can the system guarantee the implementation of the new tax law? Although the personal tax law was implemented without major changes,how to continue to improve it through further reforms is still a hot topic at present.This article will conduct in-depth research on China's personal income tax policy selection and system optimization.This article is divided into six chapters.The first chapter elaborates the background of the topic selection,research significance,literature review,research methods and innovations.The second chapter analyzes the theoretical basis of the reform of China's personal income taxation model based on the four aspects of income distribution fairness and justice theory,supply school modest tax reduction theory,personal income taxation model division theory and taxpayer rights protection theory.Reform seeks theoretical basis.The third chapter elaborates the development and classification of the personal income tax assessment model,and compares from the perspective of tax equity,efficiency and convenience,and clarifies the value orientation and direction of reform.The fourth chapter compares and analyzes the legislative characteristics of the individual income taxation model outside the territory from the aspects of taxpayer,collection range,personal income tax rate,tax preference,and taxation method,and points out the necessity of implementing the classification and comprehensive income taxation model in China.Chapter 5 analyzes the shortcomings of China's current personal income taxation model,mainly including a narrow tax base,unreasonable tax rate settings,a single tax unit,and imperfect tax collection and management systems.Chapter 6 proposes reforms to the taxation model of individual taxes in light of the problems pointed out.